GrainCorp Limited
GrainCorp Limited Fundamental Analysis
GrainCorp Limited (GNC.AX) shows weak financial fundamentals with a PE ratio of 35.71, profit margin of 0.55%, and ROE of 2.74%. The company generates $7.5B in annual revenue with weak year-over-year growth of -20.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 6.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GNC.AX's fundamental strength across five key dimensions:
Efficiency Score
WeakGNC.AX struggles to generate sufficient returns from assets.
Valuation Score
ModerateGNC.AX shows balanced valuation metrics.
Growth Score
WeakGNC.AX faces weak or negative growth trends.
Financial Health Score
ExcellentGNC.AX maintains a strong and stable balance sheet.
Profitability Score
ModerateGNC.AX maintains healthy but balanced margins.
Key Financial Metrics
Is GNC.AX Expensive or Cheap?
P/E Ratio
GNC.AX trades at 35.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GNC.AX's PEG of -0.85 indicates potential undervaluation.
Price to Book
The market values GrainCorp Limited at 1.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.15 times EBITDA. This is generally considered low.
How Well Does GNC.AX Make Money?
Net Profit Margin
For every $100 in sales, GrainCorp Limited keeps $0.55 as profit after all expenses.
Operating Margin
Core operations generate 5.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.74 in profit for every $100 of shareholder equity.
ROA
GrainCorp Limited generates $1.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GrainCorp Limited generates limited operating cash flow of $255.07M, signaling weaker underlying cash strength.
Free Cash Flow
GrainCorp Limited generates weak or negative free cash flow of $180.94M, restricting financial flexibility.
FCF Per Share
Each share generates $0.82 in free cash annually.
FCF Yield
GNC.AX converts 12.11% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.20
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How GNC.AX Stacks Against Its Sector Peers
| Metric | GNC.AX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.71 | 22.68 | Worse (Expensive) |
| ROE | 2.74% | 1223.00% | Weak |
| Net Margin | 0.55% | -5413.00% (disorted) | Weak |
| Debt/Equity | 0.59 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 2.53 | Neutral |
| ROA | 1.48% | -193416.00% (disorted) | Weak |
GNC.AX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GrainCorp Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
88.10%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
156.00%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
198.26%
Industry Style: Defensive, Dividend, Low Volatility
High Growth